MTCH - Match Stock Gains After Letter From Activist Investor | Benzinga
Match Group, Inc. (NASDAQ:MTCH) shares are trading higher Tuesday after activist-investment fund Starboard Value sent a letter to the company outlining initiatives for improving growth, profitability and capital allocation.
The Details:
Starboard Value sent a letter to Match Group’s CEO, CFO, president and board of directors regarding actionable opportunities for enhancing shareholder value. Starboard Value holds a 6.6% stake in the company, making it the third-largest shareholder.
Starboard said in the letter that Match Group should concentrate on enhancing Tinder, which contributes more than half of the company's total revenue, through product innovation and cost reductions. Starboard also sees potential in the Hinge business and Match Group's other emerging apps.
Additionally, Starboard advocated for more aggressive share buybacks by Match Group. If these changes are not implemented successfully, Starboard suggested that Match Group should consider ...